Rackspace Technology (NASDAQ:RXT) Shares Gap Up – Here’s Why

Rackspace Technology, Inc. (NASDAQ:RXT)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $5.91, but opened at $6.77. Rackspace Technology shares last traded at $6.6470, with a volume of 33,383,856 shares.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rackspace Technology in a report on Tuesday, June 2nd. Royal Bank Of Canada increased their target price on Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $1.95.

Rackspace Technology Price Performance

The company has a market capitalization of $1.68 billion, a price-to-earnings ratio of -11.14 and a beta of 3.01. The stock’s fifty day simple moving average is $3.48 and its two-hundred day simple moving average is $1.97.

Rackspace Technology (NASDAQ:RXT) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). The business had revenue of $678.10 million for the quarter, compared to the consensus estimate of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. On average, sell-side analysts predict that Rackspace Technology, Inc. will post -0.18 EPS for the current year.

Insiders Place Their Bets

In other Rackspace Technology news, CFO Mark A. Marino sold 48,099 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $5.56, for a total transaction of $267,430.44. Following the sale, the chief financial officer directly owned 3,370,431 shares of the company’s stock, valued at approximately $18,739,596.36. This represents a 1.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Dharmendra Kumar Sinha sold 188,123 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares in the company, valued at $4,119,663.17. This trade represents a 7.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 250,280 shares of company stock worth $633,378 over the last three months. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rackspace Technology

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of Rackspace Technology by 6.1% during the third quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock worth $8,867,000 after acquiring an additional 359,087 shares during the last quarter. Janus Henderson Group PLC grew its position in shares of Rackspace Technology by 179.7% during the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after acquiring an additional 1,887,317 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Rackspace Technology by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock worth $2,338,000 after acquiring an additional 96,760 shares during the last quarter. Renaissance Technologies LLC grew its position in shares of Rackspace Technology by 14.0% during the first quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock worth $2,000,000 after acquiring an additional 250,700 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its position in shares of Rackspace Technology by 1.8% during the third quarter. JPMorgan Chase & Co. now owns 1,464,389 shares of the company’s stock worth $2,065,000 after acquiring an additional 26,510 shares during the last quarter. Institutional investors own 82.48% of the company’s stock.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.